Partly Cloudy

Partly Cloudy

max temp: 8°C

min temp: 6°C

ESTD 1874 Search

Economy: Recovery now reaching the financial services sector, says CBI/PwC study

06:00 20 January 2014

Matthew Fell, the CBI

Matthew Fell, the CBI's director for competitive markets.

Archant

The UK’s economic recovery is beginning to feed through to the financial services sector, according to a new report.

shares

The latest CBI/PwC Financial Services Survey covering the three months to December shows optimism in the sector rising at its fastest rate since the study began in 1989, with profitability increasing for the fifth consecutive quarter.

Business volumes growth was strong across all customer categories, with the exception of financial institutions where they were flat. There was a notable pick-up in business with industrial and commercial companies.

Business volumes and profitability are also both expected to increase again next quarter.

The survey also shows that employment grew at its fastest pace since 2007 and expected employment growth for the first quarter of 2014 is also the strongest since the survey began.

Based on the latest CBI/PwC survey figures and their historical relationship with the Office for National Statistics’ workforce jobs data, the CBI estimates that financial services jobs increased by 10,000 during the fourth quarter of 2013 and it expects a further rise of 15,000 in the first quarter of 2014.

That would take employment in the sector to 1.16million, still 52,000 lower than the final quarter of 2008 when the financial crisis hit.

Matthew Fell, the CBI’s director for competitive markets, said: “As the recovery takes root in the wider economy, it is beginning to feed through to financial services firms. Things are starting to look more ‘normal’ after five years of volatility.

“All the key indicators − optimism, business volumes and profitability − are up. But it’s particularly encouraging to see longer term confidence indicators like marketing spend, employment and investment spend also rising strongly,” he added.

Kevin Burrowes, PwC’s UK financial services leader, added: “Banking sentiment continues to improve strongly, mirroring the UK economic rebound. We hope that as trust is earned and rebuilt over time, banks will increasingly be recognised positively for their role in society and their contribution to the UK economy.

“The sector is enjoying growing revenues and volumes of business. Profitability is increasing too. The sector’s confidence is illustrated by its rising headcount, a striking reversal from one year ago, and fewer respondents are concerned about demand than at any point since the financial crisis.”

shares

1 comment

  • Is this why the Interest Rate is being artificially low ?, and the banks interest rates are also extremely low ?

    Report this comment

    freedomf

    Monday, January 20, 2014

Charity evening on the ice at Winter Wondeland in Colchester

Suppliers, small businesses and individuals have “little chance” of getting any of the quarter of a million pounds they are owed from the collapse of Colchester’s outdoor ice rink.

Keith Norman, Fred. Olsen Cruise Lines’ business development manager (back row, centre) launches the company'’s sponsorship of Suffolk FA’s Walking Football initiative at Whitton Sports Centre in Ipswich.

Fred. Olsen Cruise Lines has become a sponsor of Suffolk FA’s Walking Football initiative.

Sam Parnell and Max Shelley of Measured Brilliance

Digital Marketing ‘meetup’ group SIMS teams up with Measured Brilliance and Ipswich Borough Council to help businesses in 2016.

developer John Howard

Town centre homes plans for important Ipswich town centre site close to the Waterfront

Matt Hampson
, founder of the Matt Hampson Foundation, which is being supported by Adnams through sales of its limited edition beer Prop Hop.
Photo: Jason Bye

Southwold brewer Adnams has reintroduced its limited edition beer Prop Hop to coincide with the start of this year’s Six Nations rugby championship.

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24